STRONG RESULTS: Johnson & Johnson's second-quarter net income more than doubled. Its adjusted net income jumped 18 percent to $4.29 billion, or $1.48 per share. Revenue was $17.88 billion, up 8.5 percent. Both topped analysts' expectations.
THE DRIVERS: Strong sales of prescription drugs and last year's acquisition of orthopedics device maker Synthes boosted revenue. Lower charges took a smaller bite out of profits than a year ago.
THE PROBLEMS: J&J says sales growth is slowing and competition is increasing for its devices and prescription drugs, and that is pushing some prices lower. Also, the manufacturing issues behind about four dozen product recalls since 2009 still aren't resolved.